Briscoes Group Reports Record Half-Year Sales Despite Challenging Retail Climate

• Briscoes Group’s half-year sales reached a record $372.1 million, up 0.77% from last year.
• Homeware sales rose by 0.28%, while sporting goods sales increased by 1.58%.
• The company expects an underlying net profit after tax to be over $40 million.

Briscoes Group, the operator of Briscoes homeware and Rebel Sport stores, has reported record half-year sales despite a challenging retail environment. In a statement to the NZX, the group announced sales of $372.1 million for the 26-week period ending July 28, 2024, a 0.77% increase from $369.2 million in the same period last year. This achievement comes as the retail sector faces broader challenges, with overall spending down.

Homeware sales for the group increased by 0.28%, while sporting goods sales rose by 1.58%. Group managing director Rod Duke commented on the performance, saying, “We’re pleased with the record sales we’ve produced for this first half. To achieve positive sales growth given the current challenging economic environment, which continues to impact consumer confidence and retail spending, is a significant performance for the Group.”

Despite the strong sales, Duke noted that the group does not expect to exceed last year’s net profit after tax (NPAT) of $42.7 million. However, he projected an underlying trading NPAT of over $40 million. This projection considers the exclusion of a one-off $7.4 million deferred-tax expense, highlighting the group’s ability to maintain profitability even under difficult conditions.

The announcement comes at a time when the retail sector is generally experiencing a downturn. According to Statistics New Zealand, retail spending fell by 3.7% in the last quarter, with a notable decrease in motor vehicle sales, which dropped by 9.8%. Other sectors such as clothing and durables, including electronics and household goods, also saw declines.

In related news, Auckland department store Smith & Caughey’s is considering downsizing, including closing its Newmarket store and reducing its Queen Street location’s footprint. The Warehouse, another major retailer, has also faced declining sales and is exploring potential restructuring options.

Despite these industry-wide challenges, Briscoes Group has managed to report a record $84.2 million NPAT for the year ending January 28, 2024, close to the previous year’s record of $88.4 million. Duke emphasised the group’s consistent strategy and growing customer base as key factors in their success.